Thinking of Buying Snowflake Shares? 3 Charts You Need to See First

Data warehousing company Snowflake (NYSE: SNOW) went public in 2020, and it has been a popular holding of Warren Buffett's Berkshire Hathaway. Its fast-growing cloud-based data management and analysis business has benefited from more companies moving their operations online in order to become more flexible and efficient. But while the company has potential, there are reasons for investors to exercise caution when it comes to the stock.

Below are three charts you should look at before deciding whether to buy shares of Snowflake today.

Snowflake's operating cash flow has been increasing over the years. However, stock-based compensation can skew those numbers since it gets added back into the calculation to determine operating cash flow. And stock-based compensation is dilutive to shareholders.

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Source Fool.com